DNL Maritime Power

The United States of America, a 21st century maritime power

11/12/2023

Director : Elyna Santoro

Author : Léa Peron

Index

3) The main sea routes

2) The world trade dominate d by shipping and ports

1) A globalized world

6) The South China sea a conflictual place

5) The hard power through the US Navy and the American fleets

4)The USA integrated into the globalization

1. A globalized world

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Due to advancements in transportation, the internet, and the New International Division of Labor (NIDL), local perspectives and organizational efforts are no longer sufficient. Around the clock, seven days a week, substantial movements of people occur globally, driven by tourism, work, health, religion, politics, and more. Simultaneously, there are vast flows of information, transactions, services, and goods, encompassing raw materials, products, food, and technology. This interconnectedness, involving countries, companies, and various stakeholders as partners, competitors, or adversaries, is encapsulated in the concept of "Globalization." Entities that actively participate in these global networks are considered "integrated," while others, due to factors like war, dictatorships, geographic isolation, lack of transportation, or distance from main routes, remain "non-integrated" or "marginalized," unable to fully capitalize on globalization. It's crucial to perceive globalization as a significant competition where each country strives to achieve the highest standing.

NIDL (New International Division of Labour) :

The emergence of a global division of labor is closely tied to the expansion of transnational corporations and the deindustrialization observed in advanced economies. A prevalent trend involves concentrating research and development activities in more economically developed countries, while relying on inexpensive and less skilled labor in less economically developed nations. The effects of this New International Division of Labor (NIDL) are not uniform. Disparities are evident both between nations, with some experiencing greater advantages than others, and within nations, manifesting in region-specific impacts.

acculturation

Globalization can lead, notably through the soft power, to an (positively or negatively) Soft power : a persuasive approach to international relations, typically involving the use of economic or cultural influence. To rule globalization, was created in 1947 to which succeeded in 1995.

Key Aspects of Globalisation

WTO

GATT

2) The world trade dominated by shipping and ports

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Additional Video

The role of ports in the Global Economy

The economics of shipping

Additional Video

The economics of shipping play a crucial role in global trade and commerce, influencing various aspects of the supply chain and international business. Here are key elements that define the economics of shipping: 1. Cost Factors: - Fuel Costs: The price of fuel, especially marine fuels like bunker fuel, significantly impacts shipping costs. Fluctuations in oil prices can have a direct effect on the overall expenses of shipping companies. - Labor Costs: The wages of ship crew, which include skilled maritime professionals, contribute to the operational costs. Labor costs vary based on the type of vessel and the region of operation. - Maintenance and Upkeep: Regular maintenance and repairs are essential to ensure the seaworthiness of vessels. These costs are a part of the economic considerations for shipping companies. 2. Shipping Rates: - Freight Rates: The fees charged for transporting goods, known as freight rates, are determined by supply and demand dynamics in the shipping market. Factors like vessel availability, cargo volume, and trade routes influence these rates. - Charter Rates: Shipping companies can either operate their vessels on a regular schedule (liner shipping) or charter them for specific routes or periods. Charter rates are influenced by market conditions and vessel specifications. 3. Economies of Scale: - Vessel Size: Larger vessels often enjoy economies of scale, as they can carry more cargo at lower unit costs. However, the operational expenses and infrastructure requirements for larger ships need to be considered in the overall economic equation. In conclusion, the economics of shipping involve a complex interplay of cost factors, market dynamics, and regulatory considerations. Shipping companies must strategically manage these elements to remain competitive, meet customer demands, and contribute to the efficiency of global supply chains. .

Ports play a crucial role in the global economy as key components of transportation infrastructure. They serve as points of connection between different modes of transportation, such as ships, trucks, and trains. Here are some key aspects of their role: 1. Trade Facilitation: Ports are major hubs for international trade, facilitating the movement of goods between countries. They handle the loading and unloading of cargo from ships, enabling the transfer of goods to and from other modes of transportation for distribution. 2. Transportation Link: Ports connect maritime routes with inland transportation networks. Goods arriving at ports are often transported further by trucks or trains to reach their final destinations. This integration is vital for the smooth flow of goods within the global supply chain. 3. Economic Gateway: Ports serve as economic gateways, attracting businesses and industries to set up operations in proximity. They contribute significantly to the economic development of regions by creating jobs and fostering economic activities related to shipping, logistics, and trade. 4. Logistics and Distribution: Ports are central to logistics and distribution networks. They provide storage facilities, container yards, and other infrastructure to manage and store goods during transit. Efficient port operations are essential for optimizing the supply chain. 5. Global Connectivity: Ports enhance global connectivity by serving as key nodes in international shipping routes. They allow countries to participate in global trade, supporting economic interdependence and globalization. 6. Revenue Generation: Ports contribute to government revenue through tariffs, fees, and taxes on imported and exported goods. This revenue can be invested in further developing port infrastructure and other public services. 7. Competitiveness: The efficiency and capacity of ports impact a country's competitiveness in the global market. Well-equipped and well-managed ports can reduce transportation costs, enhance supply chain efficiency, and attract more trade. In summary, ports are pivotal in facilitating the movement of goods, connecting different transportation modes, and driving economic development on both local and global scales. They are essential components of the infrastructure that underpins international trade and economic growth.

The main Sea Routes

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ARCTIC OCEAN

Panama Canal

Gibraltar

Bosporus

bab el mandab

Suze Canal

cape of good hope

Strait of hormuz

PACIFICOCEAN

ATLANTIC OCEAN

Click to interact

Main Sea Routes

Core Route Secondary Route

Chokepoint

more abut sea routes

Primary Secondary

4. The USA integrated into the globalization

The effects of globalization on USA economy

Importations and exportations in USA

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5)The hard power through the US Navy and the American fleets

The 6 fleets :

What's Hard Power ?

Military presence is a way to maintain and support the different American alliances, commitments, agreements and treaties. It is also a way to attract countries and companies under the American umbrella. US Collective Defense Arrangement Out of the American military land-based in some countries, the existence of 6 fleets located all over the world in assigned ocean or sea parts, is a way to protect the sea routes and have non negligible world influence.

Learn more

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"U.S. Navy promotes security, stability & prosperity "

6)The South China sea a conflictual place which concentrates so many ambitions and claims

The different stakeholders :

The Belt and Road Initiative:

Ambitions and claims in the South China sea :

How to solve this conflict ?

The intervention of the IMO

It is not directly involved in the territorial disputes in the South China Sea. However, the territorial disputes in the South China Sea have been a source of tension between China and several Southeast Asian countries, including Vietnam, the Philippines, and Malaysia. The disputes center around China’s sweeping claims of sovereignty over the sea and its estimated 11 billion barrels of untapped oil and 190 trillion cubic feet of natural gas . The United States has a role in preventing military escalation resulting from the territorial dispute. Washington’s defense treaty with Manila could draw the United States into a potential China-Philippines conflict over the substantial oil and gas reserves in the south China sea.

The risk of a military confrontation in the South China Sea involving the United States and China could rise significantly in the next eighteen months, particularly if their relationship continues to deteriorate as a result of ongoing trade frictions and recriminations over the novel coronavirus pandemic. Since 2009, China has advanced its territorial claims in this region through a variety of tactics—such as reclaiming land, militarizing islands it controls, and using legal arguments and diplomatic influence—without triggering a serious confrontation with the United States or causing a regional backlash. Most recently, China announced the creation of two new municipal districts that govern the Paracel and Spratly Islands, an attempt to strengthen its claims in the South China Sea by projecting an image of administrative control.

The end

ARCTIC OCEAN

PACIFICOCEAN

ATLANTIC OCEAN

The effects in USA economy

The integration of economies of countries throughout the world this integration also includes and is not limited to countries' political, cultural, educational, and perhaps religious views globalization has expanded the means by which countries conduct commerce and interact with the rest of the world the rapid advancement of technology, communication, and transportation has expanded and allowed for broader relationships. Globalisation is different than internationalisation which means between nations such as international trade, treaties, and alliances. On the other hand, globalization is the integration of nations under one system

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Main sea routes, driven primarily by safety considerations, strategically embrace coastal navigation while incorporating man-made canals and critical straits. These navigational choices are pivotal in safeguarding both vessels and cargo as they traverse the world's oceans. Key focal points in this maritime network include the Panama Canal, the Suez Canal, the Strait of Malacca, and the Strait of Gibraltar. These waterways play a crucial role in facilitating the seamless movement of goods across major regions and continents. As major conduits of international commerce, these sea routes significantly impact global trade dynamics. Moreover, they underscore the strategic importance of ports, where a port's significance correlates with the economic prosperity of its surrounding areas. The more central the port, the more robust the local economy, emphasizing the symbiotic relationship between maritime routes and coastal economic development.

Additional Video

The trade in USA

Total U.S. trade with foreign countries was $5.6 trillion. That was $2.5 trillion in exports and $3.1 trillion in imports of both goods and services.

• The US has a decades-long trade deficit, importing far more goods and services than it exports.
• The balance of imports and exports impacts GDP, exchange rates, and inflation levels.
• The US is the largest importer in the world, and the second-largest exporter (next to China).
• The biggest single category of goods the US imports is cars and the biggest export is refined petroleum.